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Hello Mike,
Please could I ask a couple questions?
1.
When calculating the increase of Robby’s initial 5% stake in Zinc I calculate:
5 (new value) – 2 (purchase price) = 3 (gain)
but ACCA’s answer has:
5 – 2 – 1 = 2
Please could you tell me what the “-1” is for?2.
Should goodwill be calculated for the date of the LAST share acquisition? (I noticed that a provisional net asset valuation on date of acquisition was updated with a final net asset valuation at the end of the financial year – this was then used to calculate goodwill) But generally is it correct to say that net asset valuation changes that occur after the date of acquisition do not affect the goodwill?
Thank you,
Dan
Hi Dan
I’m not going to be able to help with question 1, sorry. I don’t have a clear recollection of the question so can’t recall the “1”
Your second question – the goodwill calculation is done on the occasion that the company becomes a subsidiary. Any subsequent increase in our interest is merely an adjustment to parent’s equity between the parent and the nci
OK?
hello mike please help me with the following adjustment (ROBBY)
prior to year end robby sold land to third party for $16m with option to repurchase back on 1st july 2012 for $16m plus 3% premium.. MV on 31st may 2012 is $25m and CV $12m
robby accounted for the sale eliminating bank O/D at 31 may 2012
year end.31 may 2012
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